Agenda item

To receive the Final Statement of Accounts 2023-24.

The committee considered the report which provided an update on the finalisation of the Statement of Accounts 2023-24.

The committee noted that in finalising their audit work on the Statement of Accounts 2023-24, Ernst & Young had requested that the Council include an additional disclosure on ‘Going Concern’ in the final 2023-24 version of the Statement of Accounts. No other changes to the 2023-24 Statement of Accounts had been proposed.

The committee noted that the concern assessment was deemed necessary in recognition of the Councils financial position and also the ongoing challenging landscape within which the Council and other local authorities found themselves in. The S151 officer confirmed that the Council would expect a concern statement until such a time that the Council improved its financial sustainability.

A typing error within the report was highlighted, it was confirmed that the report should have stated that the Council outturn position for the current year 2025-26 which had been reported to the Finance Sub Committee at Quarter 1 was a £3.1m overspend in year.

The committee queried the fees in respect of the work undertaken to issue the going concern statement. It was clarified that this had not yet been calculated however figures would be shared with the S151 Officer and the Audit and Governance Committee. Any additional fees would be subject to Public Sector Audit Appointments Ltd (PSAA) determination.

Assurance was provided that the External Auditors were confident that the leadership of the Council recognised the financial challenges facing the local authority. The S151 Officer met regularly with the Leader, Deputy Leader and Senior Corporate Leadership Team to review the financial position. The Medium-Term Financial Strategy was being developed in order to improve financial suitability, build back reserves and reduce borrowing.

The committee noted that the concern statement referenced the review of the Capital Programme undertaken in 2024/25 with a view to reducing and re-profiling the amount of capital spend funded by borrowing which led to significant slippage in year. Officers confirmed that there would be continued scrutiny and review of the Capital Programme throughout 2025-26 to minimise and delay spend funded from borrowing in order to reduce the ongoing revenue costs in future years. It was agreed that capital projects needed to be underpinned by a robust business case. 

The committee noted that an additional Corporate Policy Committee had been scheduled for 30 October 2025 to consider the development of the 2026-30 MTFS and supporting consultation and engagement process. Officers committed to ensuring further consideration of how to reach rural Town and Parish Councils that were not members of ChALC during the consultation and engagement process.

RESOLVED (unanimously):

That the Audit and Governance Committee

1.    Note the Going Concern disclosure (Appendix A) that has been included in the latest Statement of Accounts for 2023/24 (on the Members Hub for information).

2.    Delegate to the Executive Director of Resources (S151 Officer), Ashley Hughes to:

a)    Sign off the Statement of Accounts for 2023/24, once the audit has concluded, and

b)    Notify Committee Members of the final signed Accounts being published on the Council’s website.